Improvement of quality of government spending

The experience of F.F| e-Stratégia Pública shows the need for a change which is focused on the articulation and combination of different procedures, to be successful in the project for Improvement of Quality of Public Spending.


The tackling of waste is the name given to the opportunities of reduction of costs, arising from simple measures in place to stamp out abusive pricing and/or the excessive and unnecessary use of some resource. It can be seen as a first layer of the set of initiatives to be promoted for the improvement of supply management. It is seen as convenient to sift through the expenses, to further enhance the controls and practices of management that currently exist. In general, tackling waste does not require innovation, investment or changes in work processes. What it does need is that expenses are well done. For this, it is essential to have three pillars of sustenance:

 

  • Establishment of reference values for identification of the occurrence;
  • Implementation of tools or methods of management that effectively block the occurrence thereof;
  • Mobilisation and taking on responsibility, of the actors involved in the correction of such deviations.

WHY A STRATEGY FOR IMPROVEMENT OF QUALITY OF GOVERNMENT SPENDING?

The Improvement of Quality of Public Spending allows not only the availability of greater volumes of genuine resources, as also allows, on complying with targets and results as requested of Government Administration, whether: Direct Administration, Indirect Administration, Mixed Capital Institution (Autarquia), Foundation, Government Company and Mixed Economy Society.

In Government Administration, as a rule, there are opportunities for cost reduction without any loss in quality of services rendered. In our research we see that the losses in the supply chain of the Government sector may get to more than 40%. Government purchases in Brazil account for 10% of GDP, and are distributed among the Federal Government, States and Municipalities. This is the second largest expense item of the states, and in general accounts for 25% of budgets.
Considering this side, it is important to implement actions to make Government Purchases more efficient and more effective to generate an increase in investment capacity. The Government Administration is always challenged to seek efficiency in the execution of Government policies, which requires funds for funding and investments.
An effective and strategic action in Government Purchases is key to the efficiency of the State, its Government Policies and its activities, and none can be executed if the purchase is not finalised. This is valid both for end activities such as health, education, security, as also for means activities, which are the one most likely to be transformed through profound changes.
With this, we see great opportunities for improvements throughout the supply chain cycle, from the sizing of demand, rationalisation of consumption, hiring of third-party services, as also the purchases aimed at the share assets and also the management of the usable life of the permanent assets.

BENEFITS:
  • Tackles Waste;
  • Increased capacity of investment for the reduction of cost expenses;
  • Transparency in actions by Government Administration.

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